Definition of

Planning
According to Urwick, “Planning is
a mental predisposition to do things
in orderly way, to think before
acting and to act in the light of facts
rather than guesses”. 
 Overview
Meaning of Planning
Nature of Planning
Importance of Planning
Process of Planning
Types of Planning
 What Is
Planning?
Planning means looking ahead and
chalking out future courses of action to be
followed. It is a preparatory step. It is a
systematic activity which determines when,
how and who is going to perform a specific
job. Planning is a detailed programme
regarding future courses of action.
 Nature of planning
Managerial Function

Futuristic Goal Oriented

Nature Of planning

Intellectual Process Pervasive

Continuous Activity
1. Planning is goal-oriented.
 Planning is made to achieve desired objective of business.
 The goals established should general acceptance otherwise individual efforts &
energies will go misguided and misdirected.

2. Planning is looking ahead.

 Planning is done for future.
 It requires peeping in future, analyzing it and predicting it.
 Thus planning is based on forecasting.

3. Planning is an intellectual process.

 Planning is a mental exercise involving creative thinking, sound judgement and
imagination.
 It is not a mere guesswork but a rotational thinking.
 A manager can prepare sound plans only if he has sound judgement, foresight and
imagination.
4. Planning is a Continuous Process.
 Planning is a never ending function due to the dynamic business environment.
 Plans are also prepared for specific period of time and at the end of that period, plans are
subjected to revaluation and review in the light of new requirements and changing
conditions.
 Planning never comes into end till the enterprise exists issues, problems may keep cropping
up and they have to be tackled by planning effectively.

5. Planning is all Pervasive.

 It is required at all levels of management and in all departments of enterprise.
 Of course, the scope of planning may differ from one level to another.

6. Planning is the primary function of management / Primacy of Planning.

 Planning lays foundation for other functions of management.
 It serves as a guide for organizing, staffing, directing and controlling.
 All the functions of management are performed within the framework of plans laid out.
 Importance of Planning

Planning Planning decreases

provides overlapping and
directions wasteful activities

Planning Planning
•Planning provides directions: Planning assures that the objectives are certainly asserted so that
they serve as a model for determining what action should be taken and in which direction. If objects
are well established, employees are informed of what the company has to do and what they need do
to accomplish those purposes.

•Planning decreases the chances of risk: Planning is an activity which permits a manager to look
forward and predict changes. By determining in prior the tasks to be completed, planning notes the
way to deal with changes and unpredictable effects.

•Planning decreases overlapping and wasteful activities: Planning works as the foundation of
organizing the activities and purposes of distinct branches, departments, and people. It assists in
avoiding chaos and confusion. Since planning guarantees precision in understanding and action,
work is conducted on easily without delays.

•Planning encourages innovative ideas: Since it is the primary function of management, new
approaches can take the form of actual plans. It is the most challenging project for the
management as it leads all planned actions pointing to growth and of the business.

•Planning aids decision making: It encourages the manager to look into the future and make a
decision from amongst several alternative plans of action. The manager has to assess each option
and pick the most viable plan.
 Process Of Planning
Setting Objectives

Developing Premises

Identifying Alternatives Courses of action

Evaluating Alternative Course of action

Selecting an Alternative

Implementing the plan

Follow Up Action
1. Setting Objectives.
•This is the primary step in the process of planning which specifies the objective of an
organization, i.e. what an organization wants to achieve.
•The planning process begins with the setting of objectives.
•Objectives are end results which the management wants to achieve by its operations.

Example:
A mobile phone company sets the objective to sell 2,00,000 units next year, which is
double the current sales.
2.  Developing Planning Premises
•Planning is essentially focused on the future, and there are certain events which are
expected to affect the policy formation.
•Such events are external in nature and affect the planning adversely if ignored.

Example:
The mobile phone company has set the objective of 2,00,000 units sale on the basis of
forecast done on the premises of favourable Government policies towards digitisation of
transactions.
3. Identifying Alternative Courses of Action
•Once objectives are set, assumptions are made.
•Then the next step is to act upon them.
•There may be many ways to act and achieve objectives.
•All the alternative courses of action should be identified.

Example:
The mobile company has many alternatives like reducing price, increasing advertising and promotion,
after sale service etc.

4. Evaluating Alternative Course of Action

•In this step, the positive and negative aspects of each alternative need to be evaluated in the light of
objectives to be achieved.
•Every alternative is evaluated in terms of lower cost, lower risks, and higher returns, within the
planning premises and within the availability of capital.

Example:
The mobile phone company will evaluate all the alternatives and check its pros and cons.
5. Selecting One Best Alternative
•The best plan, which is the most profitable plan and with minimum negative effects, is adopted and
implemented.
•In such cases, the manager’s experience and judgement play an important role in selecting the best
alternative.

Example:
Mobile phone company selects more T.V advertisements and online marketing with great after sales
service.
6. Implementing the Plan
•This is the step where other managerial functions come into the picture.
•This step is concerned with “DOING WHAT IS REQUIRED”.

Example:
Mobile phone company hires salesmen on a large scale, creates T.V advertisement, starts online
marketing activities and sets up service workshops.

7.Follow Up Action
•Monitoring the plan constantly and taking feedback at regular intervals is called follow-up.
•Monitoring of plans is very important to ensure that the plans are being implemented according to the
schedule.
1 Mark Questions.

Q. Which is the Most Crucial Step in the Planning Process?

Answer:
Setting objectives.

Q. What is meant by ‘follow Up’ as involved in the Planning Process?

Answer:
It means to ensure the actual work is taking place as per the planned
work.
 Types Of Plan
Types Of Plan

Single use plan Standing Plan

Obj Stra Pro

Poli Rul Met
Programme Budget ecti teg
cy
ced
e hod
ve y ure
SINGLE USE PLAN
A Single use plan in a business refers to plan developed for a one-time project or event that has one
specific objective. It applies to activities that do not reoccur or repeat. It is specifically designed to
achieve a particular goal. Such plan is developed to meet the needs of a unique situation.
The length of a single use plan differs greatly depending on the project in question, as a single event
plan may only last one day while a single project may last one week or months. 

Example:-
An outline for an advertising campaign. After the campaign runs its course, the short term plan will
lose its relevance except as a guide for creating future plans.
Types of Single Use Plan
1. Programme: A programme is a single use plan containing detailed
statements about project outlining the objectives, policies, procedures,
rules, tasks, physical and human resources required to implement any
course of action.

2. Budget: A budget is a statement of expected result expressed in

numerical terms for a definite period of time in the future.
STANDING PLANS
Standing plans are used over and over again because they focus on
organizational situations that occur repeatedly. They are usually made once and
retain their value over a period of years while undergoing revisions and updates.
That is why they are also called repeated use plans. 

Example:-  Businessman plans to establish a new business Entrepreneur

drafts business plan before opening the doors to their business, and they can use
their plan to guide their efforts for years into the future.
 Types Of Standing
Plans
1.Objectives: Objectives are defined as ends for the achievement of which an
organization goes on working. They may be designed as the desired future position that
the management would like to reach. The first and foremost step of the planning process
is setting organizational objectives.

Example:- Increasing sales by 10%, Getting 20% return on Investment etc. Objectives should be
clear and achievable.

2. Strategy: Strategies refer to those plans which an organization prepares to face various

situations, threats and opportunities. When the managers of an organization prepare a new
strategy for the business it is called internal strategy and when some strategies are prepared to
respond to the strategies of the competitors, then such strategies are called external strategies .

Example:- Selection of the medium of advertisement, selection of the channel of distribution etc.

3. Policy: Policies refers to the general guidelines which brings uniformity in decision-making

for achievement of organizational objectives. They provide directions to the managers of an
organization. They are flexible as they may be changed as per requirement. 
Example:- selling goods on cash basis only, reserving some post for women in the organization.
4. Procedure: Procedures are those plans which determine the sequential steps
to carry out some work/activity. They indicate which work is to be done in
which sequence/way. They help in the performance of work. Procedures are
guides to action.

Example:- Process adopted in the Selection of Employees.

5. Rule: Rules are specific statement that tell what is to be done and whatnot to be
done in a specified situation. They help in indicating which points are to be kept in
mind while performing task/work. Rules are rigid which ensure discipline in the
organization.
Example :- ‘No smoking in the office premises’. Violation of rules may invite penalty.

6. Method: Methods are standardized ways or manners in which a particular task has to

be performed. There may be many ways/method of completing a task but that
method/way must be selected by which work can be done early at the minimum possible
cost. Methods are flexible.
Example:- various methods of training are adopted by an organization to train its
employees like apprenticeship training, vestibule training etc.